March 27, 2025

Tesla's secret source of money

New Republic - Tesla, the supposed future of clean energy, isn’t just making money by selling electric cars—it’s making a fortune off a regulatory loophole. In the first nine months of 2024, 43 percent of Tesla’s net income came from selling credits to other automakers that hadn’t met emissions standards. It’s not innovation that’s keeping Tesla’s finances afloat; it’s a rigged system that Musk is milking for everything it’s worth. And all the while, he’s using his newfound power as Trump’s unelected co-president to gut the very government programs that provide working people with a fraction of the support that he’s quietly pocketing....

Under California’s Zero Emission Vehicle, or ZEV, mandate and the federal Corporate Average Fuel Economy, or CAFE, standards, carmakers are required to meet emissions targets. If they don’t, they have to buy carbon credits from companies that produce cleaner vehicles. Tesla, which only sells electric cars, racks up a surplus of these credits and sells them to gas-guzzling automakers that don’t want to invest in real change.

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